There have been major changes to company car tax over the last twelve months. From April 2020 all 0g/km Co2 emission cars will be exempt from company car tax. There are incentives for hybrid vehicles that are sub 50g/km Co2 which are generally plug in hybrids. There are extra benefits from leasing a sub 50g/km Co2 vehicle that will be able to offer 30+ miles range as per the table below
Company Car Benefit in Kind is based on a car emission of Co2 with the taxable percentages of P11D price applying in 2020/2021, for diesels that do not meet RDE2 (Real Driving Emissions Step 2) a 4% increase applies. There is now a good range of RDE2 vehicles, please contact us for information on this, especially for higher mileage drivers, a diesel RDE vehicle can now be a good option for taxation.
Class 1A National Insurance Contributions (NIC) are payable by an employer on the company car BIK payable at a rate of 13.8% of the taxable value paid per annum, it is in the employers interests to manage a low Co2 fleet to reduce these NIC costs and cut harmful emissions for the environment
The Government Plug in grant for ultra low emissions vehicle (ULEV) has changed recently with there now being a £3000 grant available which will be built into lease costs to assist monthly rentals. This grant is only available on vehicles up to £50,000.
Since April 2020 Company car tax bandings increase for vehicles that are between 1-50g/km Co2 depending upon range, many hybrid vehicles are still sub 30 mile range with will be subject to 12% of P11D price this is still an improvement on 219/2020 where this was 16%. There is now a great advantage to leasing a hybrid vehicle for your company car.
Speak to Glynns today who can provide expert advise on your next company car or fleet for employers to reduce co2 emissions for driver’s tax, employers NIC’s and an emission free future.
See below 0 Co2 emission executive options that are available to order now which are exempt for company car tax
Call 01273 916222 or email firstname.lastname@example.org for further details and advice.